What Life Insurance Doesn’t Cover

Posted by Richard on June 3, 2021

We get life insurance to protect our families. If we die, they have a nest egg.

But life insurance doesn’t cover everything, according to Policy Genius.

Among these:

* Lying. Your insurance application asks about risky hobbies, medical conditions and other behaviors. If you skydive every single week without telling your insurance company and then die in a skydiving accident, this is insurance fraud. Same thing with medical conditions. You can’t take out an insurance policy and expect a payout if you only have three months to live. Don’t lie.

* Murder by beneficiary. If the beneficiary of your insurance kills you, he or she won’t get the payout. The benefit will go to the estate and will be shared.

* Suicide. Most policies have a clause that prevents payouts within two years of taking out the policy. After two years (or whatever period your policy specifies), insurance will pay.